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Accounting treatment of transfer of shares between share holders

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Hi, I would request a suggestion based on the below facts: There are two share holders of the company namely A & B. The company issued 200 shares & 100 shares to A & B respectively @ of Rs.10 each. Now the shareholder of B transfers the shares of him to A @ 100 each. will there be any other accounting entry in the books of company other than the following: Share Capital-B a/c Dr xxxx to Share Capital -A Cr xxxx And also what will be the accounting treatment in the books of A. If A is the holding company of the said company, what will be the accounting treatment while consolidation.?
Replies (2)

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The equity of 

Cr. A capital 1000

Cr. B capital remains the same

Market cap is for valuations. I have never seen a single problem related to revaluation of equity cause that upset the balance sheet.

EPS also doesn't use revalued amounts in its formula. 

Hence 

Cr. A capital 1000

Dr. B. Capital 1000

 

 


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